You must complete all three steps in order for your loan to disburse:
If you had a Federal Direct Loan last year, simply accept your loan(s) on . Your Master Promissory Note (MPN) and Entrance Counseling are on file.
Loans are the elements of a financial aid package that must be repaid.ÌýSome loans are offered by the Federal government, others come from private sources.ÌýAll Federal Loans require the completion of theÌý.ÌýEach loan program is described below.
Eligibility for the Federal Direct SubsidizedÌýLoan is based on financial need.ÌýInterest on the loan is paid by the Federal Government as long as the student is enrolled at least half-time (6 credit hours) during the term.ÌýThe subsidized loan offers a 6 month grace period, before repayment on the loan is expected. The interest rate is determined each year by Federal guidelines.ÌýForÌý2023-24Ìýthe Federal Subsidized Direct Loan interest rateÌýis 5.50%.ÌýThere is an origination fee assessed by the Department of Education before disbursement.ÌýThe loan fee as of October 1, 2022Ìýis 1.057%. New borrowers need to complete theÌýÌýand theÌý.
Eligibility for the Federal Direct UnsubsidizedÌýLoan is not based on financial need.ÌýThe interest accrues on this loan while the student is still enrolled.ÌýThe studentÌýmay pay this interest while in school, orÌýthey can allow it to accrue and capitalize.ÌýRepayment begins six months after the student graduates or ceases to be enrolledÌýat leastÌýhalf-time (6 credit hours) during the term. The interest rate is determined each year by Federal guidelines.ÌýForÌý2023-24Ìýthe Federal Unsubsidized Direct Loan interest rateÌýis 5.50%. There is a loan fee assessed by the Department of Education before loan disbursement. As of October 1, 2022Ìýthe fee is 1.057%. New borrowers need to complete theÌýÌýand theÌý.
This federal loan program allows parents to borrow on behalf of their dependent student who is attending at least half-time (6 credit hours). The annual limit for this loan is determined by subtracting the total financial aid received from the student's total cost of attendance. The loan requires successful completion of a credit check.ÌýFor 2023-24Ìýthe interest rate is 8.05%. The Dept of Ed will assess an origination fee of 4.228% before disbursement. Parents can apply online atÌýÌýand complete theÌý. Repayment begins 60 days after the loan is fully disbursed.ÌýThe PLUS loan can be deferred until the student graduates or ceases to be enrolled. Deferment options can be requested through the loan servicer.ÌýIf a parent is not approved for the PLUS Loan, we will offer up to $4000 additionalÌýfor Freshmen and Sophomores and up to $5000 additional to Juniors and Seniors, in the Unsubsidized Direct Loan.ÌýThe parent will receive an immediate response on his/her PLUS Loan and Millikin will be notified electronically.
The private/alternative loansÌýare commercial educational loans that may be used to close the gap between your financial aid and cost of attendance. Interest rates will vary from lender to lender. There are many alternative loan options in the lending community. Personal research is up to each individual or family, as Millikin cannot advise on these products.ÌýÌýgives you a list of our historical lenders.Ìý
You are not limited to these lenders. Click here to go to ourÌýÌýlender sight.
Ìý
Federal Direct Unsubsidized Direct Loan for Graduate Students: Graduate students must file the FAFSA each year to be considered for the Unsubsidized Direct Loan. The student must maintain at least half time (6 credits) enrollment. The interest rate in 2023-24Ìýis 7.05%, with an up front fee of 1.057%. First time borrowers, be sure to complete theÌýÌýand theÌý.
The Federal Direct Graduate PLUS loan, is credit based and requires completion of the online application. The interest rate is 8.05% for 2023-24Ìýand repayment begins 60 days after full disbursement, however, the student can request a deferment. Origination fee assessed on all loans is 4.228%. You will need to complete the FAFSA to be eligible. To apply go toÌý.ÌýFirst time borrowers - complete yourÌý.
Maximum annual limits for undergraduate and graduate students are monitored by the college based on federal regulations.
| Annual Limits | Maximum for Subsidized Loans | Total Subsidized and/or Unsubsidized |
|---|---|---|
| Dependent Undergraduates | Ìý | Ìý |
| FirstÌýYearÌý | $3,500 | $5,500Ìý |
| Second Year | $4,500 | $6,500Ìý |
| Third Year and higher | $5,500 | $7,500Ìý |
| Independent Undergraduates | Ìý | Ìý |
| First Year | $3,500 | $9,500 |
| Second Year | $4,500 | $10,500 |
| Third Year and higher | $5,500Ìý | $12,500 |
| Graduate and Professional Students | Ìý | $20,500 |
In accordance with Federal regulations, when a student ceases enrollment at least half-time or graduates, the institution is required to provide Direct Loan Exit Counseling.
You can complete your exit counseling at . You will sign in with your FSA ID. You will see the amounts of your loans listed and go through helpful information on loan repayment, including who you owe, when you owe and a monthly expense estimate to help you with budgeting. Learn how to avoid default and what to do if you are having trouble making payments.
Please note:
Loan consolidation, loan forgiveness, and repayment options of Federal Student Loans are all done through studentaid.gov or by talking with the servicer of your loan. If students do not know their loan servicer, they can view all loan details at studentaid.gov. You will sign in with your FSA ID. Loan consolidation is free, you should never pay a company to consolidate your Federal Loans.